HR Management

Managing resources has always been some skill not easy to gain and not easy to keep.

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Managing resources has always been some skill not easy to gain and not easy to keep. As for all the organizations that are rather diverse and involve different kinds of resources, the knowledge of how to operate these resources properly is always of great importance. There is one particular group of organizational resources that stands separately from others. This is a group of so called human resources (in some theories named labor). There is very distributed term used to express labor which is human capital. Human resources indeed can be called a capital because it represents a set of person’s skills that may be sold for some price. However, human capital is not similar to other kinds of tools involved in the production. Unlike other components, this group is not predictable and not easy to control. As labor itself is produced and performed by people, there is the key element in it that makes it very hard to plan. It is a human factor. Human beings are not simply commodities producing labor as a part of further production of goods. Besides, some physical labor humans are able to provide something much more valuable. It is creativity of their minds, their talents and imagination that are sometimes impossible to estimate accurately.

Being one of the most significant elements involved in production of goods and services, human capital plays an important role in the final result of any business process. The necessity to manage these resources appropriately appeared along with the development of economics and theoretical studies on the subject of human resources. Firm-specific interchangeable human capital (one of the most common definitions of human resources according to macro-economics) needs to be managed properly in order to perform optimal results. Therefore, the discipline of human resource management is an important one in the nowadays society of constant evolving economic relations and growth of production.

According to Mathis and Jackson (2012), HR management performance can be divided into seven interlinked functional categories (p. 2). These categories include strategic

HR management: equal employment opportunity, staffing, talent management, total rewards, risk management and working protection, employees’ and labor relations (Mathis and Jackson, 2012, p. 2). Mathis and Jackson (2012) also point at several external forces that significantly affect HR function design and management. These forces are grouped into such dimensions as global, environmental, cultural/geographic, political, social, legal, economic and technological ones (Mathis and Jackson, 2012, p. 2). With simple words managing human resources means gathering, analyzing and operating the information regarding employees within particular organization and also providing appropriate activities in order to increase the quality of work performed by employees. Since a need for managing human capital appeared, the activity of specialists on this subject included basic administrative function. Gathering, analyzing and classifying all the data related to each employee has never been a simple task. These data included personal history, biography, capabilities, experience, skills of all the employees separately, their personal activities within present company, their performance and position, their behavior and attitudes, their personal abilities and characteristics, labor time and salary information for every one of employees and payroll records for all of them, statistics for all these issues and possible forecasts for employees’ performance.

Human resource managers had to do all this work manually although tracking an enormous amount of information took much time. Constant development of economy, increasing number of companies and, hence, competition among organizations, expansion of businesses and growth of companies themselves led to the necessity of involving more labor into production of both goods and services. When the urgent need for larger amount of human resources to participate in production appeared, the necessity to manage these resources properly subsequently increased. When the necessity of effective and efficient

HR management and planning was recognized, more and more complex activities should be involved in this process with time.

With introduction of computers and the development of informational technologies the trade of human resource managers was modernized soundly. One of the most significant steps towards innovations in this field was made in the 1980s of the twentieth century. Modern technologies in the field of managing human resources were not implemented equally everywhere. For the first time, this kind of service was introduced in the United States of America. Nowadays the human resource managers are exempted from a large piece of manual work consisting of operating innumerable information points. In the modern society, the institution of human resource management and planning represents not just common administrative activities but a combination of two disciplines. They are human capital discipline as itself and the information technology. Human Resource Management Systems (or HR modules) with simple words represent software that allows to operate information regarding employees within various applications and to integrate this data into a single universal database.

For now the major Human Resource Management Systems are built around four basic functionalities of the Human Resource discipline: thus, they usually consist of four modules. Payroll module gathers and calculates data on every employee’s information regarding his pay process. Time and data management module collects and analyzes data on each employee’s time/work information. Benefit administration module tracks the involvement of employees in various benefit programs up to pension plans. Human resource organizing module provides all the activities previously performed manually that cover operating the initial factual information on each employee. These four components of human resource management systems allow professionals of human capital subject to saving much time while operating all the information in comparison with methods previously functioning within

many organizations. The implementation of this innovation has led to new great possibilities and has increased efficiency of human resource management in separate organizations and in general.

Human Resource Management is often called Human Resource Planning as for besides gathering, organizing and analyzing information it always involves elaborating strategies for future and making forecasts based on received data. As I already mentioned, predictions and plans are the most difficult parts of HR management process. Therefore, planning and choosing strategies in this process play a significant role. There are numerous approaches for efficient Human Resources Planning (such as Back Fill Plan, Interest Inventories, Employee Challenge Plan, "Smoke" Detectors and others). Hence, modern managers have a wide variety of tools for Human Resource Management and Planning.

HR is also closely related to organizational culture. This relation is conditioned by the fact that there is a significant association between cultural backgrounds of the employees and organizational culture that is based on these backgrounds and their common features. Organizations are the important element of society. People working in the organizations come from the diverse communities and have their unique cultural differences. Organizations can have cultures of their own as well. Organizations are involved in wider social context; however, they also present embodying the independent communities with individual rules and values. There are a number of key aspects of organizational culture. For instance, there is such an assessment element that involves social outlook and standards. This element is presented by social values, beliefs and opinions that people consider principal and that consolidate the groups within the organization (Mathis and Jackson, 2012, p. 3). Culture is also a set of more material elements. These are the signs and symbols of the organization, the events, behaviors and people that embody culture. The essence of culture is social interaction, the web of communications that constitute a community.

As for the Human Resource Management it is an institution that is dependent on the companies that possess these resources; every change that these organizations undergo reflects seriously on this discipline. With a recent growth of demand for products, consumer ability and competition, a large number of companies feel the necessity to expand. The expansion is a great change for any company; hence, it influences on all the structures within the organization. Human Resource Management is one of the most important issues among them. Therefore, any global expansions affect significantly the approaches to managing human resources. Because of the differences between every country’s cultures and economic states each organization that plans to expand abroad has to develop new strategies in a field of human resource management.

There are four stages in the globalization process that any company may come through. They are domestic stage, international stage, multinational stage and, finally, global stage. During each of these steps, the organization has to survive some certain changes that are mirrored on all the inner processes differently. On each of these stages, the companies have to develop appropriate strategies considering all the issues of probable diversity that could be faced by them. On the first stage of globalization which is the domestic market any organization feels more or less familiar and there is not any need do develop particular strategy of managing human resources. On this stage, there is no need for expatriation; therefore, any training related to cross-cultural relations is not necessary. The second stage of globalization of a company is the international market. Usually the companies that expand abroad choose some close country for the first time. Very often it is some country across the border and the economical and cultural differences are not significant. The company concentrates usually on marketing strategy on this phase. Human resource managers have to carry out cross-cultural training for expatriates who are sent to a foreign country for marketing the company’s product. The company also offers jobs in its foreign department

though they are not the best positions. The third phase of the globalization process for organizations is multinational expansion. On this stage, the number of expatriates that work abroad usually decreases as a company focuses on the head department at home. The issue that is most important for a company now is the price and the quality of its production. Cultural diversity with consumers is not a cornerstone on this stage. The issue that is much more important is management of human resources within the company. On the multinational stage people of different nations have to work together in the same department; thus, the strategy of the organization has to consider cross-cultural training seriously. The fourth and the most significant stage is the global expansion. It is the final phase of the company’s globalization process when it covers most geographical areas. The targets of the company change to mass customized production while global expansion the strategy of human resource management changes. Personnel consist of people from many countries including senior management employees. The organization’s strategies of managing human resources change to more tight cross-cultural approaches as for a great number of expatriates from various places work together. Mathis and Jackson (2012) single out three types of global workers: expatriate, host-country national and third-country national (p. 8).

Management of human resources is very important discipline in nowadays society. Professionals of this subject are needed in every organization because so-called human capital differs significantly from other kinds of resources of any company. It becomes even more urgent within conditions of the globalization process; thus, proper strategies of human resource management would lead a company to success at the global market.

The issue of human resources has often been a subject of controversial argues among theorists. The definition of human resources as human capital is not the only one. There are a great number of various concepts regarding this subject. Such diversity in opinions has developed rather long time ago. Practically, since a term ‘human resources’ appeared, the

discussion on this topic started taking place. Since development of various economic sciences many theorists started considering the issue of labor and role of human resources in their studies. As concepts and definitions of human resources are different in these studies subsequently, the approaches to operate them differ soundly as well. There are numerous historical examples of diverse understandings of this subject. A distinction among relations toward a role of human factor in production and human resources in general may be very serious. Probably one of the best illustrations of such diversity may be an example of socialist countries and, especially the ones that accepted communism, the most radical socialist policy. The ideas of collectivism, for instance, implied an understanding of human resources very different from human capital defined by so-called Chicago economic school, and Karl Marx’s theory described in his work “The Capital” may seem primitive to representatives of modern economic schools that stick to more complex definitions.

In this paper, I would like to present HR program that would support the company's efforts to maximize the initial public offering and assist the company in establishing and maintaining a competitive advantage at the market, relying on the research background on HR-related topics discussed above. I will start with a brief introduction to what the initial public offering is, its key features and why it occurs.

The initial public offering (IPO) is a process of selling the security to the general public, directed to the development of a liquid market. Traditionally, transition to public sector is explained by lowering the cost of capital and raising the expansion capital. However, the research conducted by Brau and Fawcett (2006) indicate that these reasons are not among the most important that CFO’s of the organization name. For instance, high-tech firms view the IPO more as a strategic move directed to reputation enhancement than as a financing decision. Several researches on this topic document that IPO tends to occur in waves that rely on the current situation at the market.

Most companies conducting the IPO process use the assistance of an underwriter presented by the investment banking firm. Underwriters provide a valuable service, which includes help with correctly assessing the share price, and establishing a public market for the initial sale. Brau and Fawcett (2006) found that CFOs consider primarily quality, reputation, institutional investor client base and expertise while selecting high-prestige underwriters. On the other hand, selection of low-prestige underwriters is based mostly on fee structures, valuation promises and retail investor’s client base. Analyzing the IPO process design, Brau and Fawcett (2006) came to the conclusion that CFOs consider the development and utilization of the best underwriting contract as the most important issue.

In order to suggest an effective HR program that would support the company's efforts to maximize the initial public offering and assist the company in establishing and maintaining a competitive advantage at the market, I would like to refer to Tom Taulli’s (2013) book called “High-profit IPO strategies: Finding breakout IPOs for investors and traders”. The process of IPO concerns many areas of business. It involves strategic management, HR management, financial management, legal control and many other fields. The first step in a successful transformation to a public company is the choice of the right IPO strategy. It is suggested that the company that intends to go public has achieved a size that would allow it to have a predictable revenue and earnings stream (Wasserman, 2010). Another factor to consider is whether the company will have a market capitalization large enough to support trading in its stock on such scale that buyers consider that stock to be liquid (Wasserman, 2010). Once these key factors are considered, the company has to analyze the market and public’s expectancies on IPOs.

When all the preparations and analysis is done, it is time for HR management to take action. The right management team is required to implement the IPO strategy. The management team needs to have considerable financial and accounting experience in order to

meet with the complex financial and accounting requirements. This fact encourages many companies that plan to become public to hire CFOs and other executives who had experience of successful transition to public sector with other companies from outside. It is also important that managers have great communication skills to present the company’s vision, strategy and performance records to the market and investors. It is conditioned by the necessity to meet the intensive informational requirements of research analysts. Board of Directors may also need in improvement and adjustment. The exchanges demand that the majority of the company’s Board of Directors has to be independent (not insiders or affiliates) along with the audit, compensation and nominating corporate governance committees. Additionally, the company has to have an audit committee financial expert. In case if the company does not have such an expert, independent Board members may need to be hired for the audit committee in particular.

HR management has the principal role in the implementation of the IPO strategy. Recruiting the right personnel that would meet with the requirements of a changing company has a significant impact on further process of transformation. This is the first step on the way to the new company’s structure and type that influences on all future stages of the reorganization process. The presented program will assist in maximizing the initial public offering and establishing and maintaining a competitive advantage at the market. Continuing the topic of HR’s department role in company’s development, I would like to discuss the major recruiting and selection strategies utilized in the area of HR management.

Organizations develop their recruitment strategies in such a way that they could correspond with the specific positions the companies need to fill. These strategies may differ depending on the level of the position. First, I would like to focus on strategies for hiring individuals with high levels managerial experience. Recruitment and selection of the senior team positions has its specific features. The key point in this process is ensuring that the

candidate comprehends the Board’s vision, values and objectives. In order to see how the candidate perceives the company’s vision and understands its major goals, HR managers should conduct a comprehensive review and renewal of the job description in order to provide correspondence with the discussed principals. This will help adequately assessing the candidate who benefits from such an approach as well as it provides him with more complete view of future work.

The other major feature of the present strategy consists in the advertising process for internal as well as external candidates. Promoting the high level position will increase the number of possible candidates and provide the HR managers with wider selection. Using the appropriate objective assessment methods identifying the key criteria as outlined in the job description sufficiently raises the level of the recruitment process. These methods should be applied during shortlisting, interviewing, testing and referencing processes. A recruitment time table needs to be set out in order to provide effective performance of HR department. The last part is providing an appropriate communication strategy to inform employees and key stakeholders of appointments.

The procedure of selecting the candidates starts with the appointment of the selection panel by the Superintendent. This selection panel then reviews shortlisted applications, interviews shortlisted applicants and makes a recommendation to the Superintendent, or designate. The selection panel for senior staff, principals and vice principals includes a Board member. Finally, the Superintendent, or designate, makes the final hiring decision based on the recommendations received from the selection panel and reviews of the candidate references.

The next section will observe strategies for hiring hourly workers with blue-collar responsibilities. Organizations recruiting hourly workers for base-level posts often do not require a high level qualification or working experience. Many of these applicants are recent

high school or technical college graduates who have not yet defined their career goals and expectations. The other reason for job application for such candidates may consist in advanced academic activity that they are involved in. The major challenge related to recruitment of this category of workers is employees’ turnover. Employees’ turnover is the term that describes the rate at which the given company loses employees. The increased employees’ turnover is conditioned by a great number of factors. Employees more often prefer to change jobs rather than grow within one company. In addition, more people try to combine career and family life or academic activity rather than focusing on career growth only.

There are several important tips that help to avoid employees’ turnover. The first important clue is hiring people that want to develop career and help then do it. The right person to hire is the one whose principles and goals fit the organizational culture and policy. Besides, proper skills training and development programs will increase chances of employee’s retention. Second factor that positively affects turnover rate is the company’s employee-orientation. It is important to develop an employee involvement policy within the organization, when the employees’ input and open-door communication are encouraged. In the employee-oriented company, both employers and workers are mutually loyal, respecting and trusting each other. Another step towards turnover reduction is developing attractive reward program aimed to the long-term co-operation. Most organizations nowadays offer compensation packages for employees, including health insurance, vacation policy and retirement plans. However, the employee-oriented company must go further, developing reward plans and benefit programs depending on the company goals and employees’ needs. It may be very helpful to examine employee’s needs and creatively approach to satisfying them. The probability that workers will leave such loyal employee-oriented company is very low, which reduces turnover rate along with costs related to it.

Although high employees’ turnover rate is usually considered a negative factor, some

recent trends in human resource management develop a new approach towards it. The new tendency looks at turnover from a different angle, viewing this phenomenon as benefit rather than challenge. According to this trend, low turnover is only good within 20% of employees (so-called top-performance employees). Among the other 60% of middle and 20% of bottom employees, it is better to have high than low turnover rate. For this majority of employees, turnover is seen as an opportunity to hire new talents as well as reduce costs by adjusts benefit packages for new workers. This trend is recently gaining more popularity, changing the approach to turnover in human resource management.

In this section, I will discuss strategies that address hiring individuals from diverse backgrounds including foreign nationals. This is an interesting subject as it involves several specific features. For example, cultural differences may arouse certain misunderstandings or conflicts in the working environment; especially, it concerns large organizations with their own corporate culture that work at the global market. On the other hand, having a culturally and ethnically diverse workplace may have some positive implications. For instance, experience of other nations may improve the company’s strategies and help to acquire useful knowledge of alternative working methods and approaches. However, while recruiting candidates from diverse cultural and ethnic backgrounds, HR managers should consider a number of important factors.

Recruiting candidates from different backgrounds, HR manager needs to be aware of cross-cultural differences and be able to find ways of integrating these differences into the company as well. In order to achieve this goal, HR manager has to understand what cultural diversity is. He/she must recognize that cultural diversity includes a wide range of important features. This concerns such areas as international backgrounds, employee’s personality, age, skills, ethnicity, gender, religion, education, sexual orientation and a variety of other spheres (Laroche and Rutherford, 2007). Culture is a system of shared values, beliefs and meanings

that reflects in a person’s behavior. Therefore, in order successfully to integrate cultural differences into organization’s environment, loyal approach is required that would allow finding common points of contact.

While hiring employees, it is very important to be aware of legal issues related to recruitment and selection. The most important laws that coordinate the recruitment process are Equal Employment Opportunity (EEO) and Americans with Disabilities Act (ADA). For example, EEO includes several categories that are legally protected from discrimination. These categories include race, ethnic origin and color; gender (including pregnant women), age; individuals with mental or physical disabilities; military employees, religion, marital status and sexual orientation (Mathis and Jackson, 2012, p. 26). According to the United States Department of Education (2006), Americans with Disabilities Act gives civil rights protections to individuals with disabilities similar to those provided by EEO to individuals on the basis of other categories. ADA also guarantees equal opportunities and treatment in employment, transportation, public accommodations, telecommunications, and State and local government services for people with disabilities (U.S. Department of Education, 2006). Let’s proceed to the discussion of legal issues related to hiring and selection.

According to Mathis and Jackson (2012), the first type of discrimination related to the employment is referred to situations when either different standard are used in the selection of employees, or when the standard used for this purpose is not related to work (p. 26). This kind of discrimination is called disparate treatment. Disparate treatment often implies that certain category of employees is required to have special skills or perform substandard functions in contrast to other categories of workers. Another important area of discrimination related to employment is discrimination on the basis of physical and mental health issues. Medical examinations of employees are allowed only when it is job-related and consistent with employee’s business needs (Hall, 2009).

Apart from legal issues, there are also ethical considerations related to hiring and selection of employees. Ethics in the field of hiring is based on the combination of such factors as equal respect for all employees, providing job security for employees, providing psychological well-being of employees and correspondence with current legislation related to recruitment and selection. In order to conduct legal and ethical hiring procedure, HR managers must follow a certain code of ethics. This code consists of four major aspects: HR managers must treat all candidates equally; show no discrimination based on race, origin, religious or political views, gender, age, or sexual orientation; do not request candidates to include photos in their resume, and rely only on relevant and job-related information while making hiring decisions.

Another important field of HR management is talent management. Talent management refers to usage of HR strategies to improve business value and provide opportunities for companies to reach their goals. Talent management includes recruitment, retaining and improvement of employees’ performance (Mathis and Jackson, 2012, p.100). It also includes strategic workforce planning and development. Talent management strategy has to be linked with business strategy in order to be efficient. In relation to recruitment and selection process talent management implies that employees evaluations concerns two areas of measurement: potential and performance. It provides value to a company by not only focusing on current employee’s performance and profitability but also investigating employee’s potential in terms of future productivity and impact on company’s overall performance (Mathis and Jackson, 2012, p.101). Talent management has considerable implications for an organization as it is directed on creating the basis for future perspectives and seeking opportunities that would later result in increased performance. Optimization of employees’ performance provided by talent management can also contribute to the economic state of the company. Instead of hiring a great number of workers on a regular basis, the

organization could optimize the current human resources in order to fulfill each employee’s potential. By doing this, a company would save money on hiring additional workers without losing productivity. I would like to develop a plan for talent management for all levels of the organization in order to show how it can be applied to the organization.

An efficient talent management strategy starts with aligning individual goals with corporate strategy. Goal alignment allows creating organizational agility by providing the opportunity for talent managers to:

· Focus employees’ work on the company’s most important goals;

· Provide a comprehensible explanation of all responsibilities associated with specific goals;

· Increase accountability by assigning measurable and comprehensive goals that are visible company-wide.

Next step in talent management plan has to be creating highly-skilled internal talent pools. By creating talent pools, managers ensure having experienced and trained employees prepared to higher responsibility and acquiring leadership roles when required. While establishing a talent pool, managers should refer to such questions: Is the talent pool vigorous enough to meet the company’s needs? How much attention has been given to the development of the internal talent at the senior executive level? Are there prepared candidates at key positions? Presence of an appropriate talent pool results in higher performance across all levels and creates conditions for further improvement.

Finally, talent management plan includes creating a pay-for-performance culture. It means that employees are rewarded for their actual performance. This includes the full feedback, goal alignment metrics, review data and performance notes taken throughout the certain period. Such strategy allows managers to avoid improper compensation and make

consistent and fair decisions considering reward for performance. Pay-for-performance culture results in increased motivation among workers, thus improving their performance.

The next important area of HR management is performance evaluation. Performance evaluation serves such purposes as assessing employees’ performance and development goals; assessing employees’ competencies and providing an overall rating based on these categories. Performance evaluation helps to develop effective training practices and analyze employees’ productivity. This process reveals the blind spots and assists in human resources selection by identifying certain requirements that appeared to be unrecognized before the performance evaluation. The efficient performance evaluation plan includes following points:

· Assessment of performance goals;

· Assessment of development goals;

· Assessment of competencies: teamwork, initiative, customer service, flexibility, technical knowledge, dependability and communication;

· Providing consistent manager comments on the analysis of performance.

In order to assist an employee in meeting the requirements of future evaluation performance program, managers have to ensure that the employee knows how to set performance and development goals. In order to be effective, these goals must be specific, measurable, ambitious and achievable, results-based and time-bound. Explaining each of these aspects of goal setting to employees provides a fair and adequate evaluation of performance in the future. In addition, I would like to present some recommendations related to evaluation of performance. In order effectively to evaluate employees managers should:

· Ask employees to self-evaluate;

· Consider the level of difficulty in assignments;

· Judge performance, not potential;

· Judge achievement, not progress;

· Review performance for the entire period of work;

· Review each objective independently.

Performance of the employees highly depends on motivation. It is proved that the most effective method for motivating employees is the reward, either material or non-material. There is a wide range of reward systems that have their own specific features. However, most of these systems consist of common aspects. Strategic reward systems consist of the financial rewards: base salary, pay incentives, employee benefits and non-financial rewards: intrinsic rewards, rewards given by peers or superiors (praise, recognition and time off) (Mathis and Jackson, 2012, p.148). Reward system should be consistent with other HR systems as it creates the basis for HR strategy, business strategy and organizational culture. In order to be efficient, reward system must be equal to all employees. I would like to propose a reward and compensation system for each level of organizational employees that aims to increase motivation of workers and improve their performance.

As many other reward systems, the reward system that I would like to suggest is divided into financial and non-financial areas. Financial area includes direct and indirect financial rewards. Direct rewards are equitable wages and salaries, market adjustments or cost of living increases, merit increases or performance bonuses, and fair commissions. Indirect financial rewards include insurance plans, social security benefits (retirement plans, employment insurance, workers compensation, educational services, etc.) and paid absences such as vacations, holidays, sickness, educational leave and others. Non-financial area is also divided into the work environment and position. Work environment implies fair and consistent practices and policies, competent supervision, interesting and effective co-workers, comfortable and safe working environment, flexible scheduling, alternative working arrangements and modified retirement. Position rewards refer to interesting duties and responsibilities,

challenges, authority, autonomy, opportunity for recognition, feeling of achievement and advancement opportunity.

Apart from these key features, an efficient reward and compensation system has to follow the equity principle. This principle implies that all employees in an organization are treated fairly and equally. Equity can be divided into external and internal. External equity means that workers are rewarded fairly in relation to those who hold a similar position and perform similar functions in other organizations. For example, an employee is hired to work a 35-hour week in a customer support service while other organizations require their employees to work 40 or 37.5 hours per week at the same position for the same wage. In such conditions, the external equity exists as the organization’s pay rates are equal to the average rates in the organization’s sector.

The internal equity means that workers are rewarded fairly according to the relative value of their jobs within an organization. For instance, hiring a number of technical support workers, HR manager reviews the salary of each worker and compares it with others at the same position. Internal equity exists if the employees are paid fairly in relation to other staff in the same role. This does not necessarily mean that everyone is paid the same. Slight differences in salary may depend on education, experience or level of responsibility.

Creating a safe and healthy work environment is one of the key responsibilities of an HR manager. Work environment management is crucial to efficient work of all employees and achievement of company’s major goals. Work environment management consists in observing of psychological and social conditions and work environment issues of a physical nature; creating conditions for a safe work, meaning that employees are not injured and do not fall ill while being at the workplace. The main purposes of work environment management are revealing and rectification of hazards at the workplace; preventing employees from stress, accidents and illness at work; enhancing job satisfaction; reducing

malfunctions and quality losses; improving company’s financial standing and providing a good reputation for a company, facilitating recruitment of personnel. It is important to remember that the work environment management requires teamwork, including both employees and employers to work together. This kind of approach will help establishing safe and healthy work environment that works for everybody and aims at common goals.

An efficient plan for creating safe and healthy work environment includes following key points:

· Investigation of working conditions;

· Assessing the risks;

· Dealing with identified risks;

· Drawing up a plan for issues that cannot be solved immediately;

· Checking the measures being taken;

· Development of the work environment policy;

· Assigning roles for participants;

· Ensuring that participants are able to carry their responsibilities.

Following these steps will sufficiently improve performance of work environment management team and help to create safe and healthy work environment.

In conclusion, I would like to discuss unions and unionization. I would like to present a strategy for addressing unions and discuss relative laws and legal issues. Labor union is an organization established by workers to pursue common workplace goals, such as wages, benefits, work regulations and authority. Unions aim to protect workers’ rights and provide opportunities for them to improve their labor conditions. Their major standpoint consists of the idea that labor is not just a commodity but a part of the human experience, and workers have a right to decide on what their labor conditions should be participating in the work environment improvement. Key principle of unionization is the solidarity that consists of

collective action. The unions are often opposed to corporations as it is believed that these two kinds of organizations have conflicting interests. This conflict is based on the notion that corporations tend to limit employees’ freedom and the right to participate in making decisions related to labor conditions, strategic management and other important issues of business. On the contrast, unions tend to consolidate workers in order to create a common voice that addresses urgent topics for this particular group of employees. Such an approach helps people to carry their opinions, ideas and requirements to the particular person or group of people who have the authority to make decisions considering these subjects. In such conditions, it is important for organizations to have a strategy for correct addressing unions.

An effective approach to unions that prevents arousing of the conflicts consists in combination of efficient hiring practices, work environment management, and reward and compensation system (Mathis and Jackson, 2012, p. 225). In other words, the best strategy for addressing unions and unionization is preventing the issues that provoke the formation of unions. It means that managers should consider employees’ opinion while deciding on what labor conditions and work environment should be. Managers should be open and available for their employees in order to create such environment that would fit needs of all the participants. However, if the union exists and insists on immediate intervention, managers should not avoid it. Instead, they should openly discuss the union’s demands and cooperate with it in order to work out the issues together towards compromise settlement.


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